Organto Foods Inc. an integrated provider of organic and value-added organic fruits and vegetables, announced that after a successful market test, it has added Fairtrade and organic mango to its growing product portfolio.
Organto has entered into a strategic product supply agreement with a diversified Peruvian grower and plans to add other strategic supply sources around the globe as it builds out its year-round supply capabilities. The first container of organic mango from this new strategic supply source has been received and successfully marketed in Europe, with regular deliveries expected from this source though early April, followed by new supply sources which are currently in development.
In addition to organic mango, Organto plans to add supply of organic ginger and organic avocado from the same supplier in the coming months, further expanding its sources of these products to ensure year-round supply.
“We are pleased to enter into this new strategic supply relationship and add organic mango to our growing portfolio of organic fruits and vegetables. As we build out our I AM Organic branded portfolio throughout 2021, we believe mango will be a key part of our diversified product offering,” commented Rients van der Wal, Co-CEO of Organto and CEO of Organto Europe B.V. “We believe that demand for organic mango will continue to grow as consumers seek out great tasting foods combined with the unique health benefits that mango provides.”
Organto is expecting sales of organic mango to grow to an approximate CDN $4.0 to $6.01 million annual run rate over the next year, with the long-term objective of increasing the organic mango category to annualized revenues of approximately $10 million as the Company builds out its supply sources and expands its customer base over time.
Engagement of GRA Enterprises LLC
Organto also announced that it has engaged GRA Enterprises LLC to provide investor relations services pursuant to a Consulting Agreement dated February 16, 2021. Services will include the production and publication of investor bulletins, distribution of investor bulletins to the Consultant’s e-mail list, and posts via the Consultant’s blogs and social media accounts. In consideration of these services, the Company has agreed to pay the Consultant a fee of USD $30,000 for a 6-month contract.
Grants of common shares
Organto also announced that it proposes to issue 1,500,000 common shares to Bromley Consulting and Advisory Inc., a corporation controlled by Steve Bromley, Organto's co-CEO and 500,000 common shares to Brandal, B.V., a corporation controlled by Rients van der Wal, Organto's co-CEO. Mr. Bromley and Mr. van der Wal were appointed co-CEOs in September 2020 and the shares are proposed as a signing bonus. In order to conserve cash until Organto transitioned to cash flow positive operations, neither Mr. Bromley nor Bromley Consulting and Advisory Inc. were compensated for management and leadership services provided to Organto during the period November 2017 through December 2020 and Mr. van der Wal and Brandal B.V. agreed to be compensated at less than prevailing market rates. The proposed share issuance is subject to the acceptance of the TSX Venture Exchange.